Popular Retailer with 19 Louisiana Stores Contemplates Closures

In the Louisiana cities of Houma, Lafayette, Lake Charles, Shreveport, Natchitoches, and 14 others consumers are standing by. They are wondering if one of their favorite places to shop and save is going to survive or if they are going to have to declare bankruptcy and close some of those locations.

The brutal retail climate has already taken its toll on countless other businesses around Louisiana. Some of those businesses have been small while others have had a much larger impact on the retail environment of many small towns. Perhaps you've heard the news that Dollar Tree Stores has announced the planned closure of some 600 locations around the country.

Now comes word that another retailer that specializes in discount merchandise is struggling to stay afloat amongst all the red ink. That retailer has over 1400 locations across the United States. We've mentioned that 19 of those locations are in Louisiana. Perhaps you've shopped at a Big Lots! location near where you live. 

According to the company's website the mission of Big Lots! is this "We help people live BIG and save LOTS. The company got its start by offering discount prices on "big lots" of closeout items from other retailers and manufacturers. Over the years the company has expanded that philosophy and is now offering discount prices on a wide range of items from furniture, groceries, mattresses, and much more.

However in recent filing with the Securities and Exchange Commission the Big Lots! leadership has acknowledged losses in 2022,2023, and the first quarter of 2024. However, the company remains in compliance with creditors but there is an expectation the company could incur more losses.

The company has taken steps to reduce costs and improve its financial footprint and flexibility but that might not be enough to keep it from defaulting on current covenants in current borrowing arrangements. Should those defaults occur one option might be the closure of some locations. However, that has not been confirmed and no locations are reportedly on "the chopping block".

Meanwhile, the belt-tightening will continue, and the Big Lots! brand will continue to compete for your dollar. Hopefully, that is a fight they can win and continue to offer you one more shopping option for your hard-earned money.